Prepping for the 2015 holiday returns shopping season.
Retailers are already gearing up to meet the 2015 holiday shopping season, and ecommerce is an important part of overall sales. The U.S. Census Bureau reported that while traditional retail grew by 3.8 percent in 2014, ecommerce increased 14 percent.
A new infographic by Shorr Packaging Corp shows how an increase in online shopping means more processing returns for ecommerce retailers.
This year, ecommerce sales are predicted to hit $64.7 billion, with $19.4 billion in ecommerce returns, according to the infographic. Deloitte predicted that $965 billion will be spent during the 2015 holiday shopping season, with online orders comprising approximately 6.7 percent of total retail sales. This year, ecommerce return rates are projected to skyrocket to more than 30 percent.
Meanwhile, return rates are significantly higher for brick-and-mortar retailers, measuring just below 9 percent last year.
The Shorr infographic also demonstrated that the top reason shoppers refuse to buy online is the returns process, which they cite as being complicated or inconvenient (85 percent). Meanwhile, 95 percent of customers reported that they would do repeat business online if the returns process is simple and hassle-free. Furthermore, two-thirds of shoppers would buy more from online sellers if returns were free. When companies ask customers to pay for return shipping, they saw their sales decrease from 74 to 100 percent; conversely, when companies introduce free returns, they experience a 58-357 percent increase in sales over the following 48 months.
So how can retailers reduce returns? When surveyed, customers reported the following as top reasons for returns:
The survey also revealed that 40 percent of e-commerce customers kept purchases they did not want because the return process was too inconvenient.
The best practices for returns are to have a clear, concise return policy clearly identified on your ecommerce website, informing customers of the length of the return window, whether they will receive a full or partial refund or store credit for the return, and who is responsible for shipping costs.
And being proactive can also help reduce the need for returns. Whether it is including more product information or reviews on the website or introducing premium packaging to protect products in transit, online retailers can reduce the chances of their customers’ dissatisfaction with orders.
Since 63 percent of American consumers report checking returns policies before making online purchases, and 48 percent stated that they shop more frequently with online retailers that offer hassle-free returns, it makes good business sense to institute a clear, simple returns policy that will boost your online traffic.
